In this article, we talk about activist investor Paul Singer’s 5 latest stock picks. In order to read our detailed analysis of Singer’s hedge fund history and investment strategy, go directly to Activist Investor Paul Singer’s 8 Latest Stock Picks.
5. Pinterest, Inc. (NYSE:PINS)
Elliott Management’s Stake Value: $90.8 million
Percentage of Elliott Management’s 13F Portfolio: 1.04%
Number of Hedge Fund Holders: 41
Pinterest Inc. (NYSE:PINS) is a social media company that provides image-sharing services. Paul Singer’s hedge fund added Pinterest, Inc. (NYSE:PINS) to its portfolio in the second quarter of 2022 with a stake worth about $90.8 million, representing 1.04% of the total 13F portfolio.
On September 7, Wolfe Research analyst Deepak Mathivanan upgraded Pinterest, Inc. (NYSE:PINS) to Outperform from Peer Perform with a $28 price target. The analyst believes that the company has “significant runway” on both user growth and monetization over the long-term, in addition to “several positive catalysts” ahead including monthly active user growth, margin expansion, and product launches. Overall, Mathivanan believes the stock’s risk/reward “skews positively at current levels.”
According to Insider Monkey’s data, Pinterest, Inc. (NYSE:PINS) was part of 41 hedge fund portfolios at the end of the second quarter of 2022, down from 56 funds in the prior quarter. Harris Associates, with approximately 29.75 million shares worth $540.30 million, is the largest shareholder of Pinterest, Inc. (NYSE:PINS) as of Q2.
Here is what Meridian Funds specifically said about Pinterest, Inc. (NYSE:PINS) in its Q2 2022 investor letter:
“We took advantage of early-2021 volatility in Pinterest, Inc. (NYSE:PINS) to establish a hedged position in a well-established firm that we believe occupies a unique space in the social media landscape. Through its visual-first offering, users build portfolios of photos, videos, and inspirations around their hobbies and interests, which we believe will become increasingly valuable to advertisers. We believe our exposure is protected to a degree by the company’s high net cash balance and its underappreciated core franchise value. Furthermore, since we initiated our position, the company hired a new CEO with a relevant track record of success at both PayPal and Google.”
4. PayPal Holdings, Inc. (NASDAQ:PYPL)
Elliott Management’s Stake Value: $69.84 million
Percentage of Elliott Management’s 13F Portfolio: 0.8%
Number of Hedge Fund Holders: 97
PayPal Holdings, Inc. (NASDAQ:PYPL) is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers. Elliot Management added PayPal Holdings, Inc. (NASDAQ:PYPL) to its portfolio in Q2 2022, holding 1 million shares worth $69.84 million, representing 0.8% of the total portfolio.
Raymond James analyst John Davis upgraded PayPal Holdings, Inc. (NASDAQ:PYPL) to Outperform from Market Perform with a $123 price target on September 14. After suffering through several consecutive challenging quarters of meaningful negative estimate revisions, the analyst finally sees PayPal’s depressed multiple to grind higher as estimates appear to rise. Davis also states that the Street’s estimates do not necessarily reflect the incremental revenue from rising rates within OVAS, which could potentially offset any macro related transaction revenue weakness in the coming year.
On September 21, BofA analysts added PayPal Holdings, Inc. (NASDAQ:PYPL) to the firm’s “US 1 list”. The list represents a collection of the firm’s best investment ideas that are drawn from the universe of Buy-rated, U.S.-listed stocks covered by BofA Global Research.
PayPal Holdings, Inc. (NASDAQ:PYPL) was found in the 13F holdings of 97 hedge funds in the second quarter. Their total stake value in the company was $5.2 billion. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in PayPal Holdings, Inc. (NASDAQ:PYPL), with 17 million shares worth more than $1.2 billion.
Mayar Capital, an asset management firm, mentioned Paypal Holdings, Inc. (NASDAQ:PYPL) in its second quarter 2022 investor letter. Here’s what they said:
“This quarter, we bought shares in PayPal (NASDAQ:PYPL), the payments platform. PayPal has been one of the more high-profile victims of the market’s brutal ruthlessness over the past few months, and the stock fell by over two thirds between its peak in July to the beginning of March this year. As we progressed PayPal through the Mayar Checklist Process, we identified a business with a leadership position in a structurally growing market.
The company benefits from certain network effects, and faces several competitive threats at the same time. As the business profited from the move to online retail during the pandemic, as well as from the stimulus cheques handed out in the US, the stock price soared to absurd levels. As so often happens, however, the market had overcorrected by February and this quarter was offering prospective shareholders prices that assumed essentially zero growth in the business. When life gives you irrational sellers, make lemonade!”
3. Endeavor Group Holdings, Inc. (NYSE:EDR)
Elliott Management’s Stake Value: $61.68 million
Percentage of Elliott Management’s 13F Portfolio: 0.71%
Number of Hedge Fund Holders: 29
Founded in April 2009 after the merger of the William Morris Agency and the original Endeavor Talent Agency, Endeavor Group Holdings, Inc. (NYSE:EDR) is an American holding company for talent and media agencies with its primary offices in Beverly Hills, California. Paul Singer added Endeavor Group Holdings, Inc. (NYSE:EDR) to his portfolio in the second quarter, with 3 million shares valued at $61.68 million.
Earlier this August, Credit Suisse analyst Douglas Mitchelson lowered his price target on Endeavor Group Holdings, Inc. (NYSE:EDR) to $33 from $40 due to higher interest rates and his refreshed model changes. The analyst maintained an Outperform rating on the shares following quarterly results that were well ahead of estimates due primarily to pull forwards from the second half of 2022.
With roughly 91.97 million shares worth $1.89 billion, Silver Lake Partners is the leading shareholder of Endeavor Group Holdings, Inc. (NYSE:EDR) at the end of Q2 2022. Overall, 29 hedge funds were long Endeavor Group Holdings, Inc. (NYSE:EDR) at the close of the second quarter, with combined holdings worth $3.01 billion.
2. Electronic Arts Inc. (NASDAQ:EA)
Elliott Management’s Stake Value: $60.82 million
Percentage of Elliott Management’s 13F Portfolio: 0.7%
Number of Hedge Fund Holders: 46
Electronic Arts Inc. (NASDAQ:EA) is an American video game and interactive entertainment software company that delivers games, content and online services for Internet-connected consoles, personal computers, mobile phones and tablets. Elliot Management holds 500,000 shares in Electronic Arts Inc. (NASDAQ: EA), worth $60.82 million, representing 0.7% of the fund’s portfolio.
At the close of the second quarter of 2022, Electronic Arts Inc. (NASDAQ:EA) was spotted on 46 investment portfolios. The combined stakes of these funds in the company amounted to $800.12 million. Jim Simons’ Renaissance Technologies was the dominating stakeholder in Electronic Arts Inc. (NASDAQ:EA) at the end of June 2022, with stakes valued at $182.63 million
On September 13, Jefferies analyst Andrew Uerkwitz reiterated a Buy rating and $130 price target on Electronic Arts Inc. (NASDAQ:EA) shares. Speaking on the company’s projects, the analyst stated that he is “getting a little worried” about the timing of “Need for Speed,” arguing that with a December quarter launch window, this title is most at risk to be delayed among the company’s major game projects.
Here is what Mayar Capital has to say about Electronic Arts Inc. (NASDAQ:EA) in its Q2 2022 investor letter:
“Electronic Arts is also developing as we would expect. The business enjoyed strong engagement last year with players of EA games spending 20% more time than even during 2020, helped by the delayed sales of the PS5 console. A potentially important development is the ongoing negotiation between EA and FIFA regarding the licensing of the FIFA brand for the EA football game. Strongly worded public statements have been slung from both parties as part of the negotiation process, but this could certainly be an opportunity for EA.”
1. Aerojet Rocketdyne Holdings Inc. (NYSE:AJRD)
Elliott Management’s Stake Value: $121.8 million
Percentage of Elliott Management’s 13F Portfolio: 1.4%
Number of Hedge Fund Holders: 26
Aerojet Rocketdyne Holdings Inc. (NYSE:AJRD) is an American manufacturer of rocket, hypersonic, and electric propulsive systems for space, defense, civil and commercial applications. As of June 30, Elliot Management’s stakes in the company sit at $121.8 million, representing 1.4% of the fund’s investment portfolio.
On August 16, Aerojet Rocketdyne Holdings Inc. (NYSE:AJRD) officially opened its Center of Excellence for Undersea Propulsion to support the U.S. Navy’s next generation torpedoes. The facility will be used to produce the company’s Stored Chemical Energy Propulsion System, or SCEPS, and the entire torpedo afterbody. Although the company will manufacture SCEPS boilers, produce tail cones and fully assemble the torpedo afterbodies, the new manufacturing facility will also be used to support production for existing Aerojet Rocketdyne contracts.
Insider Monkey found 26 hedge funds bullish on Aerojet Rocketdyne Holdings Inc. (NYSE:AJRD) at the close of Q2 2022. The total stakes of these hedge funds amounted to $772 million. This is compared to 29 positions in the previous quarter with stakes worth $730 million. New York-based hedge fund Steel Partners is the most prominent investor in Aerojet Rocketdyne Holdings Inc. (NYSE:AJRD) and has stakes worth $160.35 million in the company.
You can also take a look at 10 Best Aerospace Stocks to Buy Now and Billionaire Mario Gabelli’s Top 10 Stock Picks.
